Centerra Gold Inc. · TSX:CG
Centerra Gold — Q2 2017 Earnings Presentation
22 slides from Centerra Gold's earnings presentation, Aug 1, 2017
Slide 1: Q2 2017 Results
Q2 2017 Results Conference Call – August 1, 2017 TSX: CG www.centerragold.com
Slide 2: Senior Management Participants
Senior Management Participants SCOTT PERRY Chief Executive Officer FRANK HERBERT President GORDON REID Chief Operating Officer DARREN MILLMAN Chief Financial Officer 2
Slide 3: Caution Regarding Forward-Looking Information
Caution Regarding Forward-Looking Information Information contained in this presentation which are not statements of historical facts, and the documents incorporated by reference herein, may be “forward-looking information” for the purposes of Canadian securities laws. Such forward-looking informati
Slide 4: Q2 2017 Results – Scott Perry, CEO
Q2 2017 Results – August 1, 2017 Scott Perry – CEO TSX: CG www.centerragold.com
Slide 5: Q2 2017 Corporate Update
Q2 - 2017 Corporate Update Safety – Continue to roll out “Work Safe : Home Safe” Program Across the Company Q2 2017 Net Earnings $23MM or $0.08 Per Share, includes $41MM or $0.14 Per Share Impairment Strong Q2 Gold Production of 195,719 Ounces and Copper Production of 15.1 million pounds Cen
Slide 6: Q2 2017 Corporate Update: Cash, Balance Sheet and Retained Earnings
Q2 - 2017 Corporate Update YTD - 2017: Internally Funded Business (US$) Balance Sheet (US$) 700 34 (as of June 30, 2017) Unrestricted 61 146 Cash 650 205 $101MM 600 550 25 US$ Millions 500 35 450 409 33 Total Debt3 401 $447MM Restricted Cash 400 $300MM 350 300 250 200 2016 Cash1 Kumtor Ops Mt Millig
Slide 7: Q2 2017 Operating Results – Gordon Reid, COO
Q2 2017 Operating Results – Aug. 1, 2017 Gordon Reid – COO TSX: CG www.centerragold.com
Slide 8: Operating Highlights
Operating Highlights Q2 2017 gold production - Kumtor 138,623 ounces, Mount Milligan 57,096 ounces1 Q2 2017 copper production - Mount Milligan 15,062,000 pounds1 Favourably revised guidance at Kumtor, increased gold production 525,000 – 555,000 oz, Lowered all-in sustaining costs per ounce sold2 to
Slide 9: Mount Milligan - Update
Mount Milligan - Update June mill throughput averaged 55,600 tpd, quarterly throughput impacted by unscheduled mill shutdown to change liners and upgrade hardware to both ball mills Focus on optimizing the mine and mill to increase gold and copper recoveries, Recoveries improving, slightly lower on
Slide 10: Öksüt: Q2 Highlights
Öksüt: Q2 Highlights Pastureland land use permit outstanding, in the Prime Minister’s Office for approval After receipt of permit first gold pour expected 18 months after start of construction Powerline construction complete Engineering works are substantially complete Remaining construction package
Slide 11: Öksüt: Powerline Construction Complete
Öksüt: Powerline Construction Complete 11
Slide 12: Q2 2017 Financial Results – Darren Millman, CFO
Q2 2017 Financial Results – Aug. 1, 2017 Darren Millman – CFO TSX: CG www.centerragold.com
Slide 13: Financial Highlights
Financial Highlights1 Quarter Ended Quarter Ended (in thousands, except ounces, per share amounts, and average realized price3) June 30, 2017 June 30, 20162 Revenue $279,218 $160,448 Total gold ounces sold 188,225 127,909 Total copper pounds sold (000’s) 14,358 - Operating cash flow before changes i
Slide 14: Other Financial Highlights
Other Financial Highlights Increased MTM revolving credit facility to $125 Million from $75 Million - New revolving facility will require the Company to enter into 2-year strategic hedging program for Mount Milligan un-streamed gold and copper production, minimal hedge swaps will be entered with a f
Slide 15: Other Financial Highlights: Debt Reduction
Other Financial Highlights Two High Cash Generating Mines - YTD $127.5 Million cash provided from mine operating activities before changes in working capital1 and after capital expenditures (including $76.4 million from Kumtor and $51.1 million from Mount Milligan) Debt repayments YTD of $60 Million
Slide 16: Summary – Scott Perry, CEO
Q2 2017 Results – August 1, 2017 Summary – Scott Perry, CEO TSX: CG www.centerragold.com
Slide 17: Centerra: Built For Success
Centerra: Built For Success Corporate Highlights Consensus Asset NAV Breakdown US 0% Internationally Diversified Gold Producer Kyrgyzstan 33% Two Cornerstone Assets Canada 46% Favourably Revised Guidance Up to 845kozpa gold at AISC1 of $693 to $747 per ounce and 60M lbs of copper Turkey Mongolia 11%
Slide 18: Question and Answer Session & Appendix
Q2 2017 Results – August 1, 2017 Question and Answer Session & Appendix TSX: CG www.centerragold.com
Slide 19: Centerra: 2017 Revised Guidance
Centerra: 2017 Revised Guidance 2017 All-in Sustaining 2017 Gold Production 2017 Copper Production Costs on a By-product basis1 (ounces) (millions pounds) (per ounce sold) Kumtor Mine 525,000 – 555,000 - $751 – $795 Mount Milligan 260,000 – 290,000 55 – 65 $457 – $508 Centerra 785,000 – 845,000 55 –
Slide 20: 2017 Guidance: Sensitivities
2017 Guidance: Sensitivities Impact on Impact on ($ millions) ($ per ounce sold) Change Costs Revenues Cash flows Net Earnings AISC(2) on by- (after tax) product basis Gold Price $50/oz 3.2 - 3.4 17.7 – 19.4 15.6 – 16.0 15.6 – 16.0 0.1 Copper Price(3) 10% 0.2 – 0.8 0.7 – 2.9 0.5 – 2.1 0.5 – 2.1 0.7
Slide 21: Mineral Reserves: Proven & Probable Dec.31, 2016
Mineral Reserves: Proven & Probable Dec.31, 2016 Proven and Probable Gold Mineral Reserves Increased to 16 million ounces Proven and Probable Copper Mineral Reserves are 2,049 million pounds Copper Mineral Reserves Proven Probable Total Proven and Probable Tonnes Grade Contained Tonnes Grade Contain
Slide 22: TSX: CG www.centerragold.com
TSX: CG www.centerragold.com